Following on from yesterday’s Handelsblatt report 13 Oct
Yesterday’s headlines from the German newspaper that the EU were set to offer the UK a transition period which they seek sent the pound back up to recent highs after the morning tumble.
Now the BBC claim to have seen a draft document prepared by Donald Tusk ( probably the same doc that Handelsblatt saw) that the EU is to begin preparing for its post-Brexit trade negotiations with
the UK, while refusing to discuss the matter with the British
The document states that in order “to be fully ready”, EU leaders would
ask Mr Barnier and his officials to start preparing now for a transition
– albeit without actually starting to talk to the UK about it.
Say the Beeb:
“The draft paper submitted to the 27 EU states by European Council
president Donald Tusk, suggests free trade talks could open in December –
should Prime Minister Theresa May improve her offer on what the UK pays
when it leaves.
The BBC’s Europe correspondent Adam Fleming said
the paper has been described as an “opening to the UK” to encourage
the government to reach a deal with the EU.
The document calls for
talks – about a transition period and the future relationship – to move
to the next phase “as soon as possible”.
The draft conclusions –
to be put to EU leaders next Friday – also call for more concessions
from the UK on its financial obligations and the rights of European
nationals who wish to stay after Brexit.”
Does this change anything right now ? Not really. To me it says that the process will still be very slow and tiresome but rightly the EU, indeed UK govt too, should be making the most of every precious second. Yes there’s deadlock and peacock-suiting/blame-gaming but it serves neither party well not to have a few options ready to discuss.
GBPUSD currently 1.3277 finding 1.3300 a step too far again. Similarly EURGBP 0.8923 from 0.8912 and GBPJPY finding sellers around 149.00
Range trading still with an extra dollop of caution thrown in.
Tusk says free trade talks could open in December